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qwelly [4]
3 years ago
9

Business at Korey's Comics has been good, and Korey expects the same business next month. However, due to an increase in busines

s, Korey has made the decision to bring on an extra hand to help run the store in the afternoons. The new employee will make $435 per month. How does this change affect Korey's monthly net income?
Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

ADDITIONAL REVENUE & ADDITIONAL COST

Explanation:

If Korey has made the decision to bring on an extra hand to help run the store in the afternoons and the new employee will make $435 per month; then there are 2 changes that will happen to the monthly net income

1. Increased Revenue: Since the new employee will be bringing in additional revenue of $435, then the direct impact of that is an increment in the revenue line of the income statement

2. Increased Costs: Secondly, this change will affect Korey's monthly net income in the area of cost because he has to pay the extra hand some sort of monthly salaries which will have a reducing effect on profit.

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Sayid is the sole shareholder of an S corporation in Hattiesburg, Mississippi. At a time when his stock basis is $20,000, the co
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Answer:

$20,000

Explanation:

The computation of the taxable gain is shown below:

The corporate gain is

= $40,000 - $20,000

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Now the stock basis is increased i.e.

= $20,000 + $20,000

= $40.000

Now the stock basis decreased to zero i.e.

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4 0
2 years ago
The Banks Company sold merchandise on account for $35,000 with terms 2/10, n/30. The cost of merchandise sold was $27,600. If th
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Answer:

The answer is: D) $34,300

Explanation:

The selling price was $35,000 with terms 2/10, n/30. This means that if the buyer pays their bill before the ten days period, they will get a 2% discount. If the buyer pays the bill after the ten days period but before thirty days, they will pay the full amount.

Since the buyer paid before the ten days period they will get a 2% discount. The total cash received by Banks Company was $35,000 x 98% = $34,300

8 0
3 years ago
Erik is a sales representative for an established building materials manufacturer. Business is good, but he is concerned that th
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Without new products, Erik can market his current products only to his current market the same products to similar customers

<h3><u>Explanation:</u></h3>

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But in the given example, Erick’s company is already successful with the developed product for more than five years. Hence, it is recommended for marketing the current products to the current customers and market the same products to similar customers.

3 0
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Describe where you are in life right now. What makes you most excited about where you are now? What questions do you have, and w
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You say: “I'm excited to see there's a lot of opportunity to use advanced computer skills in this position. Being able to build my skills and continue to develop in a growing company is important to me, and there seems to be long-term opportunities here.”
5 0
3 years ago
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Answer:

d. A larger fixed assets turnover ratio and a larger gain on asset disposal

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Accelerated depreciation is a method of depreciation whereby the book value of an asset is rapidly depreciated or reduced i.e at an accelerated rate.

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Fixed assets turnover ratio refers to what percentage of net sales is attributable to an entity's fixed assets. It is expressed as:

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